Genpact Limited (G) Slid Following Reduced Guidance

Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund’s Investor Class fund ARTQX returned 0.26%, Advisor Class fund APDQX posted a return of 0.26%, and Institutional Class fund APHQX returned 0.33%, compared to a 5.35% return for the Russell Midcap Value Index. Equity markets experienced heightened volatility followed by the announcement and subsequent pause of the so-called "Liberation Day" tariffs. The portfolio underperformed in the quarter due to the market’s preference for growth and the outperformance of more cyclical sectors and industries. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted stocks such as Genpact Limited (NYSE:G). Genpact Limited (NYSE:G) offers business process outsourcing and information technology services. The one-month return of Genpact Limited (NYSE:G) was 2.09%, and its shares gained 14.49% of their value over the last 52 weeks. On August 28, 2025, Genpact Limited (NYSE:G) stock closed at $44.97 per share, with a market capitalization of $7.837 billion.

Artisan Mid Cap Value Fund stated the following regarding Genpact Limited (NYSE:G) in its second quarter 2025 investor letter:

"Genpact Limited (NYSE:G) was a top contributor in Q1 on solid quarterly financial results, but most recently, markets punished shares after managementreduced2025annualrevenueguidancefrom6.5% growth to around 3.5%. The expected slowdown is attributed to delayed decision-making by customers in select end markets, particularly those impacted by shifting global trade dynamics. Genpact has significant exposures to supply chain management for manufacturing, high-tech consumer goods and consumer packaged goods companies. It makes sense that customers are being cautious. The good news is that the deals have not been canceled, and even with this slowdown, Genpact's pipeline is at an all-time high. In fact, the company’s disclosed pipeline for large deals is up 80% year over year. Generally, complexity and disruption are tailwinds for Genpact's supply chain business, but we admit the near term could be slower than normal. The stock valuation is now back to about the same valuation as what we paid to purchase it in June 2024 at about a 10X enterprise value to EBITA multiple.

Genpact Limited (NYSE:G) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Genpact Limited (NYSE:G) at the end of the second quarter, which was 34 in the previous quarter. In the second quarter of 2025, Genpact Limited (NYSE:G) reported strong revenue of $1.25 billion, a 7% increase compared to the previous year, highlighting broad-based outperformance across its business. While we acknowledge the potential of Genpact Limited (NYSE:G) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Genpact Limited (NYSE:G) and shared the list of cheap IT stocks hedge funds are buying. Genpact Limited (NYSE:G) was a significant contributor to Artisan Mid Cap Value Fund during Q1 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.